All Forum Posts by: John Laney

For those that don't know the Aug 17th NAR settlement will now REQUIRE realtors sign a contract with their clients PRIOR to showing their first house. While not explicit, the contract is written in such a way to encourage a commission, and discourage an hourly pay structure.

Since there will be many investors who are not willing to sign an exclusive agreement I suspect we will start seeing realtors rewriting the contract so that they get paid by the hour rather than by commission.

Has anyone else experienced this?

Here is what the contract looks like --> eXp buyer Broker representation agreement

Hey Guys, I'm working on flipping a 1.8m home in the Newberg Wine Country area.  My normal plain vanilla agent has been ok and I was planning on using her for the listing. However, this home is about 2+x the price of the homes that she normally sells.  

How important is having a luxury agent sell a luxury home?  Assuming we can get good staging, good pictures and a good media kit, is there really something extra that a luxury agent would provide me that a vanilla agent could not??

Great experience guys!  Thanks you @Jackson Tyler Hunt, @Bryant Dawson, @Chris Seveney, @Eliott Elias, @Chris Merchant and @Therasa for your wisdom and prospective. 

How do you ethically price houses that you are to buy and flip?

It is pretty easy to determine the maximum amount that I'll pay for a house but it is a bit harder for me to determine the minimum amount that I will pay.

For example, the maximum amount that my partner and I will pay on a property is a price that gives us a 10% return (or buffer in the event the ARV goes down). Using the 70% rule this corresponds to about 75%

However, I'm struggling a bit with how low I should go. I'm in discussions with a distressed house, (with all the sadness and issues that a distressed house has) and the owner just wants it gone at a "fair price".

How do you determine what that "fair and honest" price is when the owner just wants it done?

My initial thoughts are to buy it at the 70% rule which equals an approx return of 15%.

Any other considerations on how to set a price while also treating my fellow man properly and ethically?

Wise advice @Lawrence Potts, @Eliott Elias and @Theresa Harris. Thanks much!

Congrats on taking the first step.   My biggest recommendation is to start on the spreadsheet side and understand the process of analyzing deals. You can find plenty of free spreadsheets here or through a google search.  

But get your self really comfortable analyzing deals. Once you do a handful you'll be able to sniff out a good one from a bad one. 

Hello, 

I'm starting the process of finding houses to flip in the Newberg Oregon area.  We've put in a few offers but have not yet gotten one under contract.  

My question is how I should present myself when I make an offer. Would an average seller like to sell to "John Laney Real Estate LLC" and know that I'll rehab the house and then sell it? Or would they rather sell it to "John Laney " thinking that it may go to a family?

Exactly my idea, light  2-3 bug bombs in the place and wait a few days.  That may totally solve the problem for you for only a few bucks....

 @Manuel Angeles Thank you for the information. I'll be reaching out to learn more about your company